SEC Form 20-IS - iRemit Global Remittance

- 32 -
Details of depreciation and amortization follow:
2011 2010 2009
Property and equipment P=4,991,976 P=6,550,801 P=6,948,635
Software cost (Note 12) 1,543,083 1,507,900 1,665,896
P=6,535,059 P=8,058,701 P=8,614,531
12. Software Costs - net and Other Noncurrent Assets
Movements in software costs follow:
2011 2010
Cost
Balance at beginning of year P=12,096,697 P=11,425,409
Additions 1,071,252 671,288
Balance at end of year
Accumulated Amortization
13,167,949 12,096,697
Balance at beginning of year 10,228,625 8,720,725
Amortization (Note 11) 1,543,083 1,507,900
Balance at end of year 11,771,708 10,228,625
Net Book Value at end of year P=1,396,241 P=1,868,072
Other noncurrent assets consist of:
2011 2010
Input VAT P=21,242,725 P=28,493,804
Refundable deposits 4,568,661 4,099,931
Deferred input VAT 326,056 350,550
Others 44,000 44,000
P=26,181,442 P=32,988,285
The Parent Company has applied for tax credits on Input VAT with the BIR and is waiting for the
issuance of Tax Credit Certificates (TCCs). In 2011, the BIR issued two tax credit certificates to
the Parent Company for its input VAT filed for years 2005 and 2006 amounting to P=1.71 million
and P=3.82 million, respectively. Management of the Company believes that it will able to collect
the rest of the TCCs applicable to its outstanding claims. The carrying amounts are already net of
claims disallowed by the BIR amounting to P=2.06 million, nil and P=1.34 million in 2011, 2010 and
2009, respectively (see Note 20).
Refundable deposits pertain to the security deposits made by the Parent Company in relation to
rental lease agreements for its office spaces.
*SGVMC116501*